Enter the total monthly expenses ($) and the total monthly income ($) into the Expense to Income Ratio Calculator. The calculator will evaluate and display the Expense to Income Ratio.
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Expense to Income Ratio Formula
The following formula is used to calculate the Expense to Income Ratio.
EIR = E / I * 100
- Where EIR is the Expense to Income Ratio (%)
- E is the total monthly expenses ($)
- I is the total monthly income ($)
How to Calculate Expense to Income Ratio?
The following example problems outline how to calculate Expense to Income Ratio.
Example Problem #1:
- First, determine the total monthly expenses ($).
- The total monthly expenses ($) is given as: 3,000.
- Next, determine the total monthly income ($).
- The total monthly income ($) is provided as: 7,000.
- Finally, calculate the Expense to Income Ratio using the equation above:
EIR = E / I * 100
The values given above are inserted into the equation below and the solution is calculated:
EIR = 3,000 / 7,000 * 100 = .428 (%)
Example Problem #2:
For this problem, the variables required are provided below:
total monthly expenses ($) = 4,000
total monthly income ($) = 5,000
Test your knowledge using the equation and check your answer with the calculator above.
EIR = E / I * 100 = ?
